Budget 2024: On February 1, 2024 , Union Finance Minister Nirmala Sitharaman will deliver the Modi government’s interim budget. Although it is anticipated that 2017 budget would not contain any surprises, a report has indicated that the government may still be able to grant tax exemptions under the previous tax system. This exemption can be at the lowest amount allowed by the previous tax structure.
High-Ranking Official’s Declaration
As per the Business Standard article, a high-ranking official stated that any further tax exemptions in the Union Budget 2024 can only be granted at the lowest amount that was applicable under the previous income tax system. One of the proposed measures could be to increase the income tax exemption rates for women and farmers to approximately Rs 7 lakh.
No Impact on Deficit
The government’s budget deficit statistics won’t be impacted by the new policies or the recently announced changes to the direct tax system. It is important to remember, nevertheless, that the Finance Minister has already stated that the interim budget for February cannot contain any special announcements of any type. Following the Loksabha elections in July, the entire budget will be presented. There is therefore little chance of any meaningful reform.
Finance Minister’s Strategic Approach to Income Tax Rules
The Finance Minister has implemented numerous rules pertaining to income tax for taxpayers during the past three to four years. This covers other regulations under the new tax framework as well as tax exemption up to Rs 7 lakh. In the most recent budget, a new programme for women was also launched. In addition, a statement has been issued regarding farmers.
Overhaul of Tax Structure
The Finance Minister proposed a new default option and made significant adjustments to the tax structure in Budget FY24. In order to bolster the new tax system, he included new incentives. These included a complete tax exemption of up to Rs 7 lakh, compared to Rs 5 lakh under the previous tax system.
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